Items that are classified as "extraordinary" are: Not expected to recur on a regular basis. Greater than most other items on the statements. The result of discretionary accruals. Not included in net income. Unusual changes in inventories that are unrelated to sales may be a warning sign that: External financing may be required Management may be overpaid Sales are being inflated Profits are decreasing If a customer receives unordered merchandise from a supplier, It is likely that: The customer will discard the order. The customer will return the order. The customer recognize the cost as a capital expense. The customer will reduce the balance in is allowance for doubtful accounts. If a company records an inappropriate accrual in the current period, it is most likely that: The accrual will be considered an extraordinary item. The quality of its financial information will improve. It will have to reverse the accrual in the future. It be able to sell more product